MILPITAS, Calif. Sept. 30 /PRNewswire/ -- Creative Labs, Inc, the
wholly-owned US subsidiary of Creative Technology Ltd. (Nasdaq: CREAF),
today announced that it has filed a lawsuit alleging false advertising
and related claims against Aureal Semiconductor Inc., a Fremont CA
company that had previously done business under the name Media Vision
Technology, Inc.

The lawsuit relates to a series of misstatements made by Aureal
concerning Creative's Sound Blaster Live! product and related
technology. The lawsuit, which seeks injunctive relief and
damages, was filed on September 30, 1998. The lawsuit is separate from
-- but involves some of the same products as -- a patent case filed by
Creative Technology against Aureal last February. That patent
case against Aureal is still pending.

"Creative should not be required to police Aureal or its
public statements to ensure their honesty," said John Danforth,
vice president and general counsel at Creative Labs. "However,
with its series of objective misstatements about Creative's
shipping products, Aureal has simply gone too far.

"This is not a case of a simple product spec that has been
misstated or misunderstood," Danforth continued. "Neither is
this simply a case of a competitor's excessive enthusiasm about its
own promised (but not yet delivered) specs. Rather this case arises
because of a series of inexcusable misstatements through which Aureal
attempts to compare its own not-yet-shipping product against a shipping
product of Creative -- a product whose specifications and capabilities
are public and bear no resemblance to Aureal's repeated
misstatements. We are confident that we will prevail in this matter.
"

Creative Labs is the US subsidiary of Creative Technology Ltd.,
which develops, manufactures and markets a wide array of advanced
multimedia solutions for the PC, entertainment, education, music and
productivity tools markets. Creative's products are marketed
through both the OEM and retail channels under a variety of trademarks,
including the "Blaster" family name. Sound Blaster(R) has
become the multimedia industry's de facto audio standard. Sound
Blaster is an audio platform consisting of a sound card or chipset,
software drivers and bundled software applications that enable PCs to
produce high quality audio. Creative's corporate headquarters and
primary manufacturing are based in Singapore, with sales, distribution
and research and development being carried out through an extensive,
global network of subsidiaries located in North America, Europe, Asia
and Africa.

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